Gold price action has endured a choppy session, with neither bulls nor bears asserting themselves in the market. Part of the problem may be the surprise upside in the PPI, which has nullified the recovery sentiment that arose from the downbeat consumer price index number released to the market on Wednesday.
The key driver for gold prices has been the tapering talk, stemming from last week’s comments by several key players in the Fed and the stellar NFP report. Monday and Tuesday saw a very aggressive selloff as traders raised bets for tapering to kick off in late 2021. However, price has recovered most of these losses.
A lack of high-impact news for the rest of the week allows the prevailing sentiment to act on the gold price, which is currently trading flat on the day.
Technical Outlook for Gold Price
The gold price action on the daily chart shows a doji, indicating indecision. Price finds itself trading in the range between 1763.30 above and 1741.01 below.
Bulls would be seeking a break above 1763.30 to open the door towards the 1789.49 resistance, with 1815.20 coming into the picture if the advance continues above the 1800.00 psychological resistance mark.
On the other hand, a decline below 1741.01 retests the 1719.13 support, with 1699.43 and 1680.59 forming additional targets to the south.